The Court has certified a Class in this lawsuit and you were identified as a potential Class Member whose rights may be affected.

A class action is a type of lawsuit in which one or several individuals or entities prosecute claims on behalf of all members of a group of similarly situated persons and entities (i.e., the class) to obtain monetary or other relief for the entire group. The Court decided that this lawsuit can proceed as a class action because it meets the requirements of Federal Rule of Civil Procedure 23, which governs class actions in federal district courts. Specifically, the Court found that a significant number of investors purchased or sold BofI securities during the Class Period (defined in the Notice) and that the claims alleged in the lawsuit are common enough to apply to all of those investors. Judge Gonzalo P. Curiel of the United States District Court for the Southern District of California is overseeing this class action. The lawsuit is titled In re BofI Holding, Inc. Securities Litigation, Case No. 3:15-cv-2324-GPC-KSC (the “Action”).

The Class, certified by the Court, consists of:

All persons and entities that, between September 4, 2013 through and including October 13, 2015, purchased or otherwise acquired shares of the publicly traded common stock of BofI, as well as purchasers of BofI call options and sellers of BofI put options, and were damaged thereby.

Excluded from the Class are Defendants herein, the officers and directors of BofI at all relevant times, members of their immediate families and their legal representatives, heirs, successors or assigns, and any entity in which Defendants have or had a controlling interest.

The Class definition is subject to change by Court order, pursuant to Rule 23 of the Federal Rules of Civil Procedure.

If you are still not sure whether you are included in the Class, you can get additional information on this website or by contacting the lawyers who were appointed Class Counsel in this Action at the address or phone number on the Contact Us page of this website..

The Class Representative alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, which prohibit individuals and entities from making false and/or materially misleading statements in connection with the sale or purchase of a security. Specifically, the Class Representative alleges that between September 4, 2013 and October 13, 2015 (the “Class Period”), the Defendants made false and/or materially misleading statements regarding BofI’s internal controls, compliance infrastructure, and underwriting standards.  The Defendants deny the allegations of wrongdoing asserted in this Action, and deny any liability whatsoever to any member of the Class.

Beginning on October 15, 2015, several plaintiffs filed initial complaints against BofI, Mr. Garrabrants, and Mr. Micheletti. On February 1, 2016, the Court consolidated these actions and appointed Houston Municipal Employees Pension System as Lead Plaintiff.  On April 11, 2016, Lead Plaintiff filed an amended complaint against BofI, Mr. Garrabrants, Mr. Micheletti, Mr. Grinberg, Mr. Mosich, and Mr. Argalas. Lead Plaintiff filed the Third Amended Complaint on December 22, 2017; this is the operative complaint in this case.

On March 21, 2018, the Court granted the Defendants’ motion to dismiss this case. Lead Plaintiff appealed to the U.S. Court of Appeals for the Ninth Circuit, which, on October 8, 2020, reversed the dismissal order in part. On August 24, 2021, the Court entered an order certifying the class as set forth above and appointing Lead Plaintiff Houston Municipal Employees Pension System as Class Representative and Lieff Cabraser Heimann & Bernstein, LLP as Class Counsel.

The case is ongoing. You can get updated information on this website or by contacting Class Counsel.

Copies of the Court’s Orders referenced herein are available on the Important Documents page of this website.

The Court has not decided who is right and there has been no monetary recovery. By certifying the Class and authorizing the Notice, the Court is not suggesting that the Class Representative will win or lose this case. The Class Representative will attempt to prove its claims in proceedings that will occur in the future.

If a settlement of the lawsuit is reached, it will be subject to approval by the Court. Class Members will be sent additional notice of any proposed settlement and members of the Class who have not excluded themselves will have an additional opportunity to exclude themselves at that time, object to the proposed settlement, or submit a Proof of Claim form to demonstrate their entitlement to any payment. Similarly, the Court may also direct further notice to the Class following any judgment that may be entered after a trial of this case or decision by the Court, or for any other reason that the Court may determine.

No money or any other benefits are available now because the Court has not yet decided whether Defendants committed any wrongdoing or are liable to any member of the Class and the parties have not settled the case. There is no guarantee that money or any other benefit will ever be obtained. If there is a recovery, you will be notified about how to ask for your share.

If you are a Class Member and you do nothing, you will stay in the Class. This means you will be legally bound by all of the Court’s orders and judgments in this Action, whether favorable or unfavorable, unless the Court issues an order de-certifying the Class or excluding you from the Class at a later date. If you stay in the Class and money is paid to the Class, either through a settlement with Defendants or a judgment of the Court, you may be eligible to receive a share of that recovery. If you choose to remain a member of the Class, you do not have to do anything at this time (other than retain your records of your purchases and sales of BofI securities and any other documents relating to BofI). If there is a recovery in the future, members of the Class will be required to support their requests for payment by demonstrating their membership in the Class and documenting their purchases and sales of BofI securities and their resulting damages. Neither the Class Representative, BofI, nor the Notice Administrator (defined in the Notice) necessarily have information about your transactions in BofI securities. Your broker may not keep your records for as long as may be necessary. For these reasons, please be sure to keep all records of your transactions in BofI securities and any other documents relating to BofI.

If at a later date the parties decide to settle, then you will have another opportunity to exclude yourself from the case. Absent settlement, however, you will not be able to exclude yourself from the Class or subsequent orders and judgments if you do not request exclusion at this time.

If you want to pursue your own lawsuit or claims against Defendants about the alleged conduct in this case, do not want to be bound by what the Court does in this case, or if you simply do not want to be part of the Class pursuing claims against Defendants, you must ask to be excluded. If you exclude yourself from the Class—which means to remove yourself from the Class and is sometimes called “opting-out” of the Class—you will not be legally bound by any past, present, or future Court orders or judgments in this Action, and will keep any right you may have to individually sue Defendants in the future. However, if you exclude yourself, you also will not get any money or any other benefits from this Action, if there are any.

If you start your own lawsuit against Defendants after you exclude yourself, you will have to hire and pay your own lawyer for that lawsuit, and you will have to prove your claims. Please note that if you decide to exclude yourself from the Class, you should consult with an attorney prior to doing so and discuss whether your individual claim would be time-barred by the applicable statutes of limitations or repose or face any other impediments to recovery.

If you wish to be excluded from the Class (“opt-out”), you must submit a letter stating that you “request exclusion from the Class in In re BofI Holding, Inc. Securities Litigation, Case No. 3:15-cv-2324-GPC-KSC (S.D. Cal.).” Your request for exclusion must: (i) state the name, address, and telephone number of the person or entity requesting exclusion; (ii) state the type and amount of BofI securities that the person or entity requesting exclusion purchased and/or sold during the Class Period, as well as the dates and prices of each such purchase and/or sale; and (iii) be signed by the person or entity requesting exclusion or an authorized representative. You must mail your exclusion request so that it is postmarked no later than March 21, 2022 to:

In re BofI Holding, Inc. Securities Litigation
c/o JND Legal Administration
EXCLUSIONS
P.O. Box 91425
Seattle, WA 98111

You cannot exclude yourself from the Class by telephone or by email, and a request for exclusion will not be effective unless it contains all the information called for by this section and is postmarked by the date stated above, unless the Court makes an exception. Only request exclusion if you do not wish to participate in the Action and do not wish to share in any potential recovery that the Class may obtain.

As a member of the Class, you will be represented by Class Counsel who are:

Richard M. Heimann, Katherine Lubin Benson, and Michael K. Sheen
LIEFF CABRASER HEIMANN & BERNSTEIN, LLP
275 Battery Street, 29th Floor
San Francisco, CA 94111
(415) 956-1000

Unless you hire your own personal lawyer, as a Class Member you will not have any direct obligations to pay the costs of this lawsuit. In the event there is a recovery by the Class, all costs and expenses, including Class Counsel’s attorneys’ fees, will be paid from that recovery in an amount that is approved by the Court. If there is no recovery, Class Counsel will not receive any attorneys’ fees or expenses.

You do not need to hire your own lawyer, because Class Counsel are already working on your behalf. However, you have the right to retain your own personal lawyer at your own expense. If you retain separate counsel to represent you in this case, your counsel must enter an appearance on your behalf by filing a Notice of Appearance with the Court. If you wish, you may also consult with your own counsel concerning your rights in this Action.

If you want more detailed information, you may contact Class Counsel or visit this website, where you will find case-related documents and detailed information regarding the Action. You may also call JND Legal Administration (the “Notice Administrator”) at (888) 921-1538. Please do not call or write the Court or the Defendants.

If you received a postcard with information about the Action (“Postcard Notice”) at an old address, or if you move, please advise the Notice Administrator of your current address so that you can receive any future notices and/or Proof of Claim forms. If you are not a member of the Class, you may discard the Postcard Notice. Any change to your address should be mailed to:

In re BofI Holding, Inc. Securities Litigation
c/o JND Legal Administration
P.O. Box 91425
Seattle, WA 98111